TUI says capital increase is possible, but not at current share price

FRANKFURT, Oct 1 (Reuters) - Holiday company TUI, which has been hit hard by the impact of the coronavirus pandemic, wants to wait for its share price to recover before launching any capital increase, its CEO said in comments published on Thursday.

“I do think that we have to do something in terms of M&A and capital, but not right now,” Fritz Joussen said, adding the group will evaluate whether it can generate cash by way of asset sales or a capital increase.

“At some point we will think about a capital increase, but that is practically impossible at a share price of 3.20 euros”, Joussen said.

Sources last month said TUI was planning a share sale to raise up to 1 billion euros ($1.2 billion), as the world’s largest holiday company looks to ride out the coronavirus-linked travel slump. (Reporting by Ilona Wissenbach; writing by Thomas Seythal; editing by Sarah Young)